Trade Details & Summary

IWM Iron Condor (LIVE Closing Trade)

The IWM iron condor position we had reached our 50% profit target early (netting us approx $180) with more than 18 days still left in the options expiration cycle.

More Discussion

Was This Helpful? Add Comments/Questions

Show Video Transcript +

In this video update, I want to go through a live closing trade that we're going to do in IWM. Again, these are all live, real-time videos that we do here at Option Office, so it is about 11:36 on Monday, the 3rd.

We've got one of our iron condor positions in IWM now reaching our profit target. We sold three of these iron condors for $108 each; they're now worth about $47, so that's 50% of what we had originally sold them for, so we're looking about $183 profit on just that end of the trade.

We do have some November options, but those have not yet decayed totally yet to the point in which we need to get those off.

In this case, what we're going to do here is just do a very simply closing order for this position, so we're just going to right-click on it, go down to create closing order, then buy iron condor, and that's going to bring up the trade tab here, once it loads.

It's going to try to buy it back at a mid-price of around $47. Now in this case, we can actually maybe shoot for just a dollar higher, might help fill. We've got a lot of contracts, lot of different strike prices here.

That might help, so we'll go ahead and submit that order and see if it gets filled, hopefully pretty quickly in the market. IWM is pretty liquid for the security that we're trading on the strikes that we're trading today.

I already see that there's definitely some activity, some open interest on all the strikes that we're trading, so again it's just going to be a matter of matching up all the buyers and sellers here for our price.

Again, this trade's working out pretty well. We got back into this trade, or got into this trade, back on 9/13. If we go back here to the charts, 9/13 would be just after the market dropped here a little bit, so when spiked up, let me just zoom in here so you guys can see it.

When spiked up on 9/13, this is when we got in that trade right here, traded it as a neutral iron condor. The market kind of went against us a little bit and came back in just ever so slightly, but the reason that we're making some real money off of this is that implied volatility has gone down since then, so that's really where most of the profit is coming from in this position.

You can see, we just got the alert here that we did get filled on this position at $48, so we're out of this IWM iron condor. Still have one lingering on for next month, what's right; we'll just keep all these trades rotating and rolling on.

As always, if you guys have questions or comments on the trades we make here, please ask them in the comments section right below, and until next time, happy trading.

eBook Download

The "Ultimate" Options Guide

Ultimate Options Strategy Guide

The step-by-step guide on how to set up each of the top 18+ options strategies we trade to generate monthly income. Read the whole strategy guide in less than 30 mins and have it forever to reference.

Download PDF

Join More Than 47,345 Members

Membership is always free & you can upgrade anytime to unlock our live trades.